Poltava will begin to partially modernize the largest boiler house in the city

Representatives of Poltavateploenergo, Poltava Regional Council, and the Northern Environmental Finance Corporation (NEFCO) in Ukraine jointly signed a loan agreement to implement the investment project DemoUkrainaDH in Poltava for the partial modernization of the largest boiler house in the city, the press service of Poltavateploenergo reports.

The project is scheduled to be completed by the end of 2021.

This is the second joint project of Poltava heat and power engineers and the Northern Environmental Financial Corporation. However, NEFCO adheres to the principles of “one city - one project” in Ukraine. An exception was made for Poltava. After all, the speed and quality of the first joint project's implementation gave grounds for the European partners to include in the financial program one more project on the city's heating system.

This project, DemoUkrainaDH in Poltava, will reduce natural gas consumption by almost 2.7 million cubic meters per year, and the emissions of ozone-depleting substances CO2 into the air by 5 thousand tons per year.

The total cost of the new joint project is €1.58 million. Of these, €0.500 million are NEFCO loan funds (at 6% per annum, with a grace period of 1 year), €0.380 million are grants from NEFCO, and €0.700 million are the company's own funds.

For the first time in Ukraine, Poltava Regional Council acted as a guarantor for a loan from an international financial organization. This became possible after amendments were made to the Budget Code of Ukraine at the end of 2018, which gave the regional councils the right to act as guarantors of borrowings.

Head of Poltavateploenergo Oleksandr Oleksenko noted, such a project was being implemented in Ukraine for the first time. However, its implementation would significantly increase the technical level of heat production and provide significant savings in natural gas and save the enterprise's funds for its purchase.

Tags: gas, foreign affairs, heating season, investments, modernization, infrastructure, housing and public utilities

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